Westland Milk is looking to suspend milk collection from dairy farms operated by Gloriavale.
Last week the Employment Court ruled that members of the Christian community who worked up to 70 hours a week for years were not volunteers.
This opens the door for the labour inspectorate to enforce minimum employment standards in the community.
AdvertisementAdvertise with NZME.
Westland Dairy Company chief executive Richard Wyeth welcomed the court's decisions and said the company was committed to the rights of children and the freedom and dignity of everyone involved in its supply chains.
"Dairy farms controlled by Gloriavale, like all Westland suppliers, are contractually obliged to comply with New Zealand employment law and standards and to keep up-to-date employment records. Failure to do so could lead to termination of that contract.
"Following the recent Employment Court decision, Westland is investigating legal avenues to suspend milk collection from dairy farms operated within the Gloriavale community group of companies."
Wyeth said the company was working through a range of issues that could be caused by an abrupt cessation of milk collection such as animal welfare and environmental issues caused by milk disposal.
"We also look forward to the completion of proposed new legislation for New Zealand that aims to achieve freedom, fairness and dignity in the operations of supply chains and guidance as to what all companies can do to address and prevent modern slavery and worker exploitation in New Zealand and internationally.
"Suspension of milk from farms controlled by Gloriavale will have minimal impact on Westland's operations," he said.